Leases

9 Months Ended

Sep. 30, 2020

13.

Leases

Operating and Financing Leases — We determine whether a contract contains a lease at contract inception. For leases subsequent to adoption of ASC 842, lease liabilities are calculated using a discount rate based on our incremental borrowing rate at lease commencement. We have operating lease agreements for certain facilities and equipment as well as tower space and base stations. Certain tower space leases have renewal option terms that have been deemed to be reasonably certain to be exercised. These renewal options extend a lease up to 20 years. We recognize operating lease expense on a straight-line basis over the lease term. As of September 30, 2020, there were no significant leases which have not commenced.

The following is a summary of our lease expense included in the unaudited condensed consolidated statements of operations (in thousands):

	For the Three		For the Three
	Months Ended		Months Ended
	September 30, 2020		September 30, 2019
Operating lease cost	$	2,864	$		2,837
Financing lease cost:
Amortization of leased assets		38			171
Interest on lease liabilities		31			8
Total lease cost	$	2,933	$		3,016

		For the Nine			For the Nine
		Months Ended			Months Ended
		September 30, 2020			September 30, 2019
Operating lease cost	$	8,657		$		8,800
Financing lease cost:
Amortization of leased assets		219				548
Interest on lease liabilities		80				35
Total lease cost	$	8,956		$		9,383

Other information regarding our leases is as follows (in thousands, except lease terms and discount rates):

	For the Nine			For the Nine
	Months Ended			Months Ended
	September 30, 2020			September 30, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	9,331		$	9,847
Operating cash flows used in financing leases	$	80		$	35
Financing cash flows used in financing leases	$	513		$	532
Non-cash items:
Operating leases obtained	$	2,660		$	2,795
Financing leases obtained	$	428		$	-
Weighted average remaining lease term
Operating leases	7 years			8 years
Financing leases	2 years			1 year

Weighted average discount rate
Operating leases		10.4	%		10.3	%
Financing leases		11.1	%		8.1	%

Annual future minimum lease payments as of September 30, 2020 (in thousands):

	Operating			Financing
Years ending December 31,	Leases			Leases
2020 (period from October 1 to December 31)	$	2,280		$	126
2021		12,566			503
2022		11,278			442
2023		7,276			80
2024		5,521			-
Thereafter		28,956			-
Total future minimum lease payments		67,877			1,151
Less: Amount representing interest		(22,457	)		(177	)
Present value of net minimum lease payments	$	45,420		$	974

Reported as of September 30, 2020
Accrued liabilities	$	7,197		$	339
Non-current operating lease liabilities		38,223			-
Other non-current liabilities		-			635
Total lease liabilities	$	45,420		$	974